Mattel started this topic @ 15:46 on 26/04/2005
Hi
I'm interested in starting up a small business selling computer components through eBay. However, I need a Organisation reg. number in order to register with my suppliers. Does this mean I have to register my sole trader business somehow? I'm aware that I must register as being self employed within 3 months, but what else before I can start trading? They also ask for a VAT reg number. Do I have to register for VAT, even though my turnover will be literally £100 - £200 a week. Also, the suppliers ask for a utility bill. What exactly is this?
Thanks for any help
RE: Sole trader start up?
James Smith | 26/04/2005 04:09 PM
Mattel,
You don’t have to register for VAT, and quite frankly if you are selling bits on ebay the fact you aren’t registered for VAT wont help you as you will need to charge it on all your sales.
Registration is voluntary under the threshold of £60,000 of turnover per annnum.
There is no-where else to register your sole trade other than with the IR. You wont have a "organisation registration number" as a sole trader. If you explain your circumstances to them, I am sure they won’t need all these details; no doubt it is a standard application form.
A utility bill is simply a household bill, such as telecoms, gas, electricity etc. They just want to check you are who you say you are.
Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: RE: Sole trader start up?
Mattel | 26/04/2005 04:56 PM
Ok, thanks alot James. I'll post here again if I have any more questions!
RE: RE: Sole trader start up?
Mattel | 26/04/2005 06:31 PM
Ok, so just to double check. All I have to do is sign up as self employed with the IR then I can start trading?
What happens when I want to cease trading? Do I merely have to sign up as being not self emplyed again?
Also, what would my profit limits be before I had to start paying fees such as Class 2 NICs (or anything else I am not yet aware of).
thanks for your time
RE: Sole trader start up?
James Smith | 27/04/2005 08:58 AM
All you need to do is sign up within 3 months of starting to trade.
You will then be in the self assessment system, and need to submit a tax return each year to the Inland Revenue listing your income. You therefore need to keep records of all your income and expenditure. I have some basic excel templates I can send you for this sort of thing (email me), or I have a paid e-book on my site which explains in a lot more detail how to keep proper accounting records. Ceasing to trade is signalled via your tax return, or you can call the IR to let them know.
If you earn more than £4895 per annum in profit you will need to pay class 2 NI which is £2.05 per week.
Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: Sole trader start up?
Mattel | 27/04/2005 03:15 PM
Ok, thanks again James!
